Ned Jordan and the Rise and Fall of the Jordan Car Company

 

Through the creation of the Jordan Car Company in 1916 and the business’s subsequent rapid growth, car enthusiast and entrepreneur Ned Jordan became emblematic of the level of success businessowners often found during the Roaring ‘20s. Unfortunately for Jordan, the company’s collapse at the end of decade was also representative of the economic turmoil impacting the country at this time. There are a number of reasons to explain Jordan’s meteoric rise and fall, but the first concerns the initial success of the company being assisted by mutual interests that aligned the federal government and business

Perhaps intentionally so, Jordan founded his car company at a time in the United States when conditions were highly advantageous for business because of the actions taken by the Woodrow Wilson Administration. As historian Gabriel Kolko has noted, President Woodrow Wilson was far more pro-business in his actions than most scholars have traditionally given him credit for. Through the creation of the Federal Trade Commission, Wilson and his political allies sought to create an environment that would alleviate any doubts on the part of business owners—especially smaller ones—concerning their future. In essence, the goal was for prospective business owners like Jordan to feel at ease knowing that “prosperity” was “assured” and that “economic freedom” for their companies would be protected at all costs.1 To assist small businesses, the Commission produced pamphlets containing helpful strategies for how to reduce their operating expenses and to otherwise become more “efficient” in their day-to-day practices.2 

The libertarian Murray Rothbard has argued that the “political capitalism” employed by the government during this time period enabled the most influential of individuals in big business to safeguard their own power. While some historians have disagreed, Rothbard and others have contended that the federal government under the Wilson Administration restrained the dangers that free markets posed to the business class in America.3 By reigning in the variance associated with true free markets, the government officials that championed political capitalism sought to simultaneously protect the interests of big business, while also offering a leg up to smaller companies. Ned Jordan had the acumen and wherewithal to ensure he would benefit immensely from this new environment for businesses.

The Jordan Car Company also quickly became known for its stylish advertisements that made clever use of Ned Jordan’s lyrical and poetic talents. Unlike his competitors, Jordan saw an opening to appeal to a younger crowd of consumers, especially women. Jordan became the first entrepreneur within the auto industry to place advertisements in women’s magazines, and to do so through the use of color imagery that emphasized his cars’ sex appeal.4 These decisions epitomized the strategy Jordan employed for the company in its early years, which would lead to the company’s value ballooning to over three million dollars by the end of 1923.5 Acting on the company’s success, Jordan decided to launch a bold advertising campaign, with the poetic and stylish poster “Somewhere West of Laramie” at the forefront. The image of a woman at the wheel of a Jordan convertible, driving alongside a horse, would become one of the most famous images of the growing car industry during the 1920s. Absent from this advertisement, and most others released by Jordan, was the mention of mechanical and engineering specifications – details that would be more appealing to men. In their place were lines that allude to a woman’s desire for adventure and to be able to do so in a “graceful” way.6 In this environment, and with a decade of sustained financial prosperity, further expansion and continued profits seemed all but assured.

Unfortunately for Ned Jordan, the success of his company would not last. In 1927 he introduced a new, smaller model, the “Luxury Custom,” which he believed would be a hit with consumers. This proved not to be the case. By 1928, lagging sales, overproduction from previous years, and the additional costs associated with making the new model drained the company of its financial resources.7 To explain Jordan’s decision-making, one economic historian has noted that it is all too common for businessowners to feel the need to increase the scale of their operations and to invest in new products, despite the risks associated with doing so.8 While the specific reasons are often unique to the owner in question, for Jordan it is likely he felt innovation in the company was needed in order to meet the projected demands of consumers, and to thus maintain the company’s continued trajectory of growth. Grabbing hold of a new sector of the market before his competitors did also likely motivated Jordan. Moreover, Jordan was also likely concerned—as successful and driven moguls often are—with enhancing his own personal reputation within the automobile industry.9

The start of the Great Depression made the Jordan Car Company’s financial situation even worse, and by 1931 Ned Jordan had no choice but to cease operations. Jordan’s rise to fame and prosperity during the 1920s was made possible by the favorable economic conditions fostered by the federal government, but ultimately the entrepreneur succumbed to the pressure to maintain the company’s financial standing amidst growing competition.

Notes:

 1. Gabriel Kolko, Triumph of Conservatism (New York: Free Press, 1977), 163.

2. Ibid, 162.

3. Robert L. Bradley and Roger Donway, "Reconsidering Gabriel Kolko: A Half-Century Perspective." The Independent Review 17, no. 4 (Spring 2013): 562.

4. Bradford Wernle, “Jordan Put the Sizzle in the Pitch,” Automotive News 70, no. 5666 (1996): 78.

5. Robert Tate, “Remembering Automotive Pioneer Ned Jordan.” MotorCities: National Heritage Area, October 19, 2022, https://www.motorcities.org/story-of-the-week/2022/remembering-automotive-pioneer-ned-jordan.

6. Ibid.

7. James H. Lackey, The Jordan Automobile: A History (Jefferson, NC: McFarland & Company Inc., 2006), 76-77.

8. Alfred D. Chandler, Scale and Scope: The Dynamics of Industrial Capitalism. (Birmingham: Harvard University Press, 1990), 16-17.

9. Ibid., 16-17.